Question? I have a Seller staying in the property two weeks after completion by the Buyers. – That is, two weeks after the seller has received the funds and the Buyer is registered on title. They have all agreed but what issues might we have to deal with?
You need to decide who is going to pay property taxes for those two weeks, strata fees if it’s a condo, utilities and any other prorated costs that might be incurred. It needs to be negotiated between the parties. I usually see it being the person who has the actual use of the property – therefore, in my opinion, the ‘Adjustment date” on the contract should be the date the Buyers take possession – not when they close on the purchase.
The contract states that the Buyer insures the property for the completion date – Your Sellers may want to carry a tenant policy for their belongings.
Be sure to address yard maintenance - who is responsible?
repairs and maintenance costs of the H2O tank, appliances – anything that could break under everyday use.
The reverse scenario has the same issues that need to be discussed and addressed. Perhaps a transfer is happening prior to the sale of the Buyer’s home completing. The Buyer may need possession earlier than they are able to complete the purchase.
Remember to deal with the adjustment date, insurance and maintenance concerns.
In both circumstances be sure to provide a condition for both parties to seek legal advice. Based on past experience, some lawyers will not recommend a possession date that does not coincide with a completion date – problems can arise if both parties have not given complete thought to the responsibilities and expectations they have of each other.
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